This is the highest pension in Serbia

This is the highest pension in Serbia

And with the January increase…

With the January increase of 14.8 percent, the highest pension in Serbia will rise to RSD 229,745.

Formula to calculate the pension

The formula for calculating pensions is not at all simple, but the bottom line is that the higher the salary during the working period, the higher the pension. The amount of the pension, practically, is equal to the product of personal and general points.

To reach this personal score, we need to calculate a personal coefficient. The starting point is to divide each of our annual earnings by the average national earnings in the respective years, and then divide the sum of the obtained amounts by the years of service.

From January 1, 1970, to 2002, net earnings are considered, and as of 2003, the gross amount. When we know what our coefficient is, we multiply it by the years of service and get a personal point. The obtained amount is multiplied by the general point, which as of January 2023 amounts to 1,111.25 dinars.

What is the exact formula?

Annual personal coefficient = Annual salary / Average annual salary

Personal coefficient = Sum of annual personal coefficients / Number of years of service

Personal point = Personal coefficient * Number of years of service

Pension amount = Personal point * General point